The Corner

Shocking to No One

The Washington Post reports:

Some of the country’s most prominent health insurance companies have decided to stop offering new child-only plans, rather than comply with rules in the new health-care law that will require such plans to start accepting children with preexisting medical conditions after Sept. 23.

As just about everyone who gave it a moment’s thought predicted before the law was enacted, this sort of thing is going to happen all over the individual insurance market as various parts of the law take effect. Insurers have to respond rationally to the economic pressures they are presented with, and this law creates pressures that make it far more reasonable to stop providing some kinds of insurance than to provide them under the terms Obamacare demands.

 

Here’s a flavor of the sort of “thinking” that was behind this law—again, from the Post story:

“We’re just days away from a new era when insurance companies must stop denying coverage to kids just because they are sick, and now some of the biggest changed their minds,” Ethan Rome, executive director of Health Care for America Now, an advocacy group, said in a statement. “[It] is immoral, and to blame their appalling behavior on the new law is patently dishonest.”

Patently dishonest? Does he think they are getting out of that piece of the insurance business for a reason other than the new law? Or does he (like HHS Secretary Kathleen Sebelius) just think that disagreeing with him is dishonest?

 

It’s a new era alright.

Yuval Levin is the director of social, cultural, and constitutional studies at the American Enterprise Institute and the editor of National Affairs.

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